An initiative bringing together UK buy-side firms to exchange perspectives on broker services, such as payments for research, led by consultancy Investit, will take place in coming weeks as key firms have signed on.
Richard Phillipson, principal at Investit, who is spearheading the initiative told theTRADEnews.com the programme had a “critical mass” of support from UK asset managers and the first group meeting would take place in coming weeks.
The initiative centres upon a commission analysis survey developed by Investit with buy-side firms to help them get a better idea of each others’ commission spending practices. It was largely triggered by a November clampdown on buy-side payments for broker services by UK markets watchdog the Financial Services Authority, now the Financial Conduct Authority (FCA).
“Participants are keen to get a set of comparable data about how other firms ascribe to the research they buy and the value they put on it,” Phillipson said. “We hope these meetings will help buy-side firms to their sell-side counterparties and the FCA to show how they use research and what they believe represents good value.”
Phillipson said ten firms were expected to take part in the first round of talks.
“Firms joining the Investit commission analysis project are very keen to get comparable data on how firms spend commission and how much,” he said.
“They are equally interested to hear how other participating firms assess the value they get for clients and arrive at the prices they pay.”
In November, the Financial Services Authority found only two of 15 UK asset managers met current rules on payments for broker services, which largely revolved around payments for corporate access. The FCA will continue this push for asset managers to separate payments for corporate access and research, as the latter can be paid for through dealing commissions.
To participate in the survey, or to learn more, visit: http://www.investit.com/benchmarking/commission-analysis/